Foreign investment is required to get an BOI registration in Thailand. The investment must be made within the 36 months of receiving the promotional certificate. The proof of ownership has to be given for the amount of foreign investment. The minimum capital requirement is 1M Thai, but it may vary depending on the kind of business you intend to start.
BOI company registrations offer tax-free benefits
Numerous incentives are offered to foreign investors looking to start a business in Thailand. Companies that register with the Board of Investment of Thailand (BOI) can receive exemptions from corporate tax on income, import duties and construction, transportation and costs. In addition, certain types of BOI businesses can be eligible for tax incentives that are non-tax-free. This includes the ability to bring foreign employees and transfer foreign currency.
Some of the most prominent privileges that are provided by the BOI include tax-free corporate income exemption, reduction in tariffs on the machinery used in production the company, free treatment of imported raw materials, authorization to invest in land, permission to invite foreign experts, as well as visa and work permit facilitation. These privileges are valid for a period of up to ten years.
List of activities that are not permitted by the BOI
Foreign-majority-owned companies are allowed to provide financial services to affiliates under the amended List of activities not permitted by the BOI. This is a change from previous policies that barred companies that were promoted from offering the services to affiliates of theirs. This restriction was particularly problematic for foreign-majority-owned companies that want to engage in lending offshore.
While many businesses are banned in the UAE There is a broad range of activities that are allowed. These activities have to be closely connected and revenue-generating. In the majority of cases, the revenue generated by these activities has to be derived from the approved business activity. This includes wholesale business, retail, and accounting. The capital required for these types of activities cannot exceed 100 million Thai bahts. Retailing businesses require a minimum capital of THB 20,000,000 (or approximately $600,000.). The list of activities on each list is available on the BOI website.
Requirements for obtaining BOI promotion certificates. BOI promotion certificate
Obtaining a BOI promotion certificate for your business is an essential step to take to establish an entity that is legally legal in Thailand. The BOI provides a range of advantages, including reduced costs for legal proceedings and shorter processing times. Promotion certificates can also ease the process of applying for a work permit as well as getting an immigration visa.
First, the business owner has to fill out a questionnaire that contains details about the business and its investors. The forms typically range from up to ten pages, and will include multiple questions. Some of the questions will concern the company’s investment strategy, the target market development, shareholders, and transfer of technology. Each section has to be completed in a meticulous manner by companies.
Types of businesses that are qualified for BOI status
Many advantages accrue to a company that has applied for BOI status. But, BOI company in Thailand is crucial to select the appropriate category based on your type of business. BOI registration is beneficial to numerous industries. Some of these are mining, agricultural and light industry, metal products, paper and plastics, utilities and public services.
BOI status may be available to a Thai manufacturing company. This allows you to hire foreign workers and draw the best talent.
Cost to join the BOI
If you’re considering starting a new business in Thailand or trying to expand your existing business, it’s essential to register with the BOI. This government entity offers a variety of incentives and tax breaks to draw foreign investors. Companies that register with the BOI receive reduced taxes on imports and corporate taxes. They can also receive tax exemptions for expenses such as transportation utility bills, construction and other. BOI companies are also eligible for non-tax incentives such as foreign currency transfers and the introduction of foreign workers.
To register with the BOI in Thailand, new companies must invest at least one million Thai bahts in capital. The amount can be paid from cash or other assets. Capital investment could also include the cost of construction and other assets. It cannot include wages, land value or production.